Diabetes supplies segment preps for competitive bidding

Independent pharmacies with a significant business in diabetes supplies will be facing their next big challenge to that business in January 2013 when competitive bidding of durable medical equipment goes into effect for mail order, Chris Smith, director of policy and regulatory affairs for the National Association of Community Pharmacists, told Drug Store News.

“Basically what that means is if our members do home delivery, they won’t be able to do it at that point because it will be considered mail order. And if it’s considered mail order, it has to go through the competitive bidding program,” he said. For independents, that can mean the loss of a key point of differentiation versus their national competitors who don’t offer that kind of personalized service.

The competitive bidding process for retail pharmacy, through which a pharmacy would either have to competitively bid or be bound by the lowest competitive bid, doesn’t go into effect until 2016, however. “If that happens, our members will probably just drop out of selling this product,” Smith said.

NCPA is continuing to make a legislative push in 2012 to exclude diabetes-testing supplies from the DME competitive bidding process, even though in an election year, bipartisan politicking will weigh heavily on the success of any bill.

The article above is part of the DSN Category Review Series. For the complete DME/Diabetes Buy-In Report, including extensive charts, data and more analysis, click here.

Suppliers see opportunity in ‘light’ DME business

There is significant opportunity within what some suppliers are calling “light DME” — those daily living aids essential to people who need durable medical equipment solutions. And while the standard definition of DME drums up images of motorized wheelchairs or incliner/recliner sofas, those big-ticket items supplemented by Medicare do not necessarily represent the best opportunity for mass retailers. It’s the smaller items — canes, extended-handle instruments and bathroom safety — that are more often the cash items that represent the opportunity.

“We still see an absolutely huge gap,” said Matt McElduff, president of Carex Health Brands. Currently, food, drug and mass pharmacy outlets are capturing approximately one-third of that market, McElduff noted. “As the Medicare pressures continue [and] with competitive bidding going into round two, it’s going to emphasize the need for retail,” he continued. “Assuming this round two [of competitive bidding] goes as planned, there will be [fewer] outlets available for the general consumer to find or buy these products.”

According to Carex figures, the total universe of what they call “light DME” represents $806 million, with food, drug and mass capturing $266 million. Like a diabetes patient with the multitude of prescriptions they fill, the DME patient represents a strong pharmacy book of business, so making a significant linear-foot merchandising commitment could help establish that section as a destination center for future DME-patients.

The article above is part of the DSN Category Review Series. For the complete DME/Diabetes Buy-In Report, including extensive charts, data and more analysis, click here.

Adults resolve to address paternity questions

More than half of adults with paternity questions have resolved to address their questions in 2012, according to an Identigene survey. Men with paternity questions are twice as likely (51%) than women (25%) to address paternity in 2012.

Overall, as many as 11% of adults have reported they have personally been in a situation where a paternity test was appropriate; and nearly 1-in-5 (18%) said that they or a close friend or family member have questioned paternity.

The research helps to confirm a seasonal sales trend identified by Identigene in its sales of Identigene DNA paternity test: Each year, the company experiences a spike in first-quarter sales that it attributes, in part, to New Year’s resolutions. “The new year definitely seems to trigger many adults with paternity questions to take steps to address their question,” stated Steven Smith, executive director for Identigene.

Although the specific reasoning for paternity testing varies from person to person, the benefits of confirming paternity are multifaceted and far-reaching. In the survey, 3-in-4 adults (77%) said they believe it’s important for a child to know his or her biological father. From emotional and health benefits to financial welfare, paternity answers can have many important and positive aspects for children. “Knowledge is empowering,” Smith said. “It’s important for children and families to know the truth about paternity, as it can impact a child’s health, as well as their emotional health and well-being for years to come.”

The article above is part of the DSN Category Review Series. For the complete DME/Diabetes Buy-In Report, including extensive charts, data and more analysis, click here.

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